The social media world is all abuzz with news that Microsoft is spending a whopping $26.2 billion to acquire LinkedIn.
The deal is just the latest in the trend of tech giants snatching up smaller social media companies — a trend that snowballed after Facebook’s acquisition of Instagram for $1 billion in 2012. But this deal dwarfs those of the past, partly for its record-breaking price, but also because of LinkedIn’s role as a major player in the social media industry. The networking site has an estimated 433 million members in more than 200 countries.
The deal just another indication of the significance of social media, and while the valuations may seem insane, they certainly justify the position of social media companies in the industry. Businesses that are not harnessing social media are going to get left behind in the digital age.
LinkedIn is certainly missing the “social medium of the moment” glamor that makes buzzwords of companies like WhatsApp or Snapchat, but the networking site has proved to have staying power. It’s absolutely ancient in social media terms, launching in 2002. But both professionals and recruiters have seen the value in having a social channel devoted exclusively to networking, and clearly Microsoft has plans to leverage the site to its advantage.
LinkedIn will be used to improve Microsoft’s existing cloud-based business services, said Microsoft CEO Satya Nadella in announcing the purchase Monday. Users could soon see LinkedIn data integrated into platforms such as Outlook and Skype.
No matter how Microsoft ends up utilizing LinkedIn, it is clear that the network is a data gold mine of valuable information about companies and their employees. LinkedIn is still expected to operate as usual after the purchase, and could become an even more powerful player as it is integrated into other Microsoft products. It may be an old work horse in the social media world, but it still can’t be beat for B2B marketing and communication.
